Default Tips
Haggag and Paci, American Economic Journal: Applied Economics 6(3), 2014, 1-19. Over 13 million New York City taxi rides; regression discontinuity design comparing rides either side of the fare at which suggested tip options change; default suggestions substantially raise tip amounts. Secondary analysis using quasi-random assignment of customers to cars supports the finding across a wider range of fares. Higher suggestions led more customers to leave no card tip. Reading depth: abstract.
Haggag and Paci, American Economic Journal: Applied Economics 6(3), 2014, 1-19. Over 13 million New York City taxi rides; regression discontinuity design comparing rides either side of the fare at which suggested tip options change; default suggestions substantially raise tip amounts. Secondary analysis using quasi-random assignment of customers to cars supports the finding across a wider range of fares. Higher suggestions led more customers to leave no card tip. Reading depth: abstract.
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Haggag, K., & Paci, G. (2014). “Default Tips.” American Economic Journal: Applied Economics, 6(3), 1-19. doi:10.1257/app.6.3.1 https://doi.org/10.1257/app.6.3.1